GASB 75 OPEB Actuarial Valuation
Town of Fairfax | Measurement Date June 30, 2024
Presented to Town Council – February 4, 2026
What is OPEB?
• Other Post Employment Benefits
(OPEB): For Town of Fairfax, OPEB is
primarily retiree medical benefits
• Benefits provided through MOU
contract provisions and PEMHCA
obligations
• Eligibility: retire at age 50+ with 5+
years of service (age 52+ if hired
on/after Jan 1, 2013)
• Town costs varies by retiree’s
bargaining unit and years of service
at retirement
How Valuation is
Determined
• Actuarial valuation uses assumptions
on demographics and healthcare cost
trends
• Key factors: turnover, mortality,
disability, retirement patterns, and
healthcare inflation
• Discount rate applied to estimate
Actuarial Accrued Liability (AAL)
• AAL compared to Actuarial Value of
Assets (AVA) held in OPEB trust
• Difference = Unfunded Actuarial
Accrued Liability (UAAL)
Key Results
• Significant improvement in Unfunded
AAL (UAAL)
• Trust assets slightly exceed liabilities:
104% funded as of June 30, 2024
• In 2017, assets were 31% of liabilities
(strong improvement over time)
• Improvement reflects 2013 plan
revisions for new employees
• Results depend on actuarial assumptions
and market variables
Summary
Complies with GASB
Statement No. 75
reporting requirements
for Other Post
Employment Benefits
(OPEB) i.e. retiree medical
Determine Net OPEB
Liability and OPEB Benefit
Cost for FY ending June 30,
2025, which also flows into
the Town’s Annual Financial
Audit for FY 2024/25
Prepared by Nicolay
Consulting Group for the
Town of Fairfax. Nicolay’s
Actuarial is available for
questions via Zoom at this
meeting